Topic
l know aircraft cost a lot, and the airlines have to pay it, but do they get any discounts upon the amount of aircraft they buy?
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l know aircraft cost a lot, and the airlines have to pay it, but do they get any discounts upon the amount of aircraft they buy?
If you have ever heard of bidding on contracts by Boeing, Lockheed, this is the game. The airline solicits bidding on a contract for x # of aircraft of x type, and the manufacturers bid on the production of the aircraft. Discounts are negotiated.
Yes, they get breaks on the purchase price but also other incentives such as guaranteed maintenance costs, financing, etc. This a a good way for the aircraft manufacturers to keep their average sale prices as high as possible.
Ok what happens is that an aircraft company will get some investors behind them (banks, private, their own cash) & they will approach an aircraft company & discuss options of the aircraft & the model. Then the aircraft company will bring up a price & yes they can get price breaks if they decide to order more aircraft over the period of few years. But if an aircraft company is desperate for customers they may offer incentives. An agreement usually lasts for years between the aircraft company & the customer
Haa haaaaaaaaaaa! Discounts? Man, there goes safety!
money
that is how its done
They pay billions. For dozens of planes.
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